• °f  IH.  Library 


OHIO  CEMENT 
COMPANY 


H30  Majestic  Building 
DETROIT,  MICH* 


Digitized  by  the  Internet  Archive 
in  2017  with  funding  from 
University  of  Illinois  Urbana-Champaign  Alternates 


https://archive.org/details/ohiocementcdmpanOOohio 


Ohio 
Cement 
C ompany 


Ohio  Cement  Company 

Incorporated  under  the  Laws  of 
West  Virginia. 


CAPITALIZATION 

$1,500,000  7%  cumulative  preferred  stock, 

retirable  at  the  option  of  the 
Company,  after  five  years,  at 
$110  a share  and  accrued  divi- 
dends ♦ 

$3,000,000  common  stock* 


Par  value  of  shares,  $100, 


Ohio  Cement  Company 


OFFICERS 


William  I Holmes, 
Augustus  C.  Stellwagen, 
Harry  P.  Harding, 


President 
- Vice-President 
Secretary  and  Treasurer 


Directors 


William  D.  Holmes,  - Detroit,  Mich. 

Formerly  President  Iola  Portland  Cement  Company. 

Augustus  C.  Stellwagen,  - - Detroit,  Mich. 

Attorney. 

Joseph  D.  Hudson,  - - Detroit,  Mich. 

Merchant  and  Capitalist. 

M.  B.  Farrin,  - Cincinnati,  Ohio. 

President  M.  B.  Farrin  Lumber  Company. 


Prof.  John  R.  Allen,  - - Ann  Arbor,  Mich. 

Engineering  Department  of  University  of  Michigan. 

John  A.  I^ockard,  - Wellston,  Ohio 

Merchant. 


Harry  P.  Harding 
J.  W.  Morrison,  M.  D., 


Wellston,  Ohio 
Detroit,  Mich. 


Engineers 

Brush,  Allen  & Anderson, 

Depositories 

National  Bank  of  Commerce, 
Dime  Savings  Bank,  - 
First  National  Bank, 


Detroit,  Mich. 


Detroit,  Mich. 
Detroit,  Mich. 
Wellston,  Ohio 


OHIO  CEMENT  COMPANY  has  succeeded 
in  securing  an  option,  until  May  1,  1908,  to  purchase, 
for  the  sum  of  one  hundred  thousand  dollars,  the 
entire  Home  Tract  of  Hamden  Furnace  land,  consist- 
ing of  2,500  acres,  and  adjoining  the  property  now 
controlled  by  the  Company* 


January  6,  1908, 


Financial 


OHIO  CEMENT  COMPANY  is  chartered  for 
the  purpose  of  manufacturing  Portland  cement  and 
other  clay  products,  mining  coal  and  of  owning 
securities  of  other  companies  engaged  in  similar 
lines  of  business. 

Ohio  Cement  Company  has  bought  and  has  in 
its  treasury  $307,000  of  the  stock  (68  per  cent  of  a 
total  issue  of  $450,000)  and  $110,500  of  the  6 per  cent 
bonds  (out  of  a total  issue  of  $204,000)  of  The 
Ohio  Portland  Cement  Company* 

Ohio  Cement  Company  has  bought,  and  when 
final  payment  of  $16,100  is  made,  will  own, 
through  another  subsidiary  company,  to  be  organ- 
ized for  that  purpose,  440  acres  of  coal,  limestone 
and  shale  land  in  one  tract  in  Vinton  County, 
Ohio,  adjoining  the  property  of  The  Ohio  Portland 
Cement  Company* 

The  $110,500  of  bonds  and  $307,000  of  stock  of 
The  Ohio  Portland  Cement  Company  owned  by 
Ohio  Cement  Company,  as  above  stated,  together 
with  the  land  just  purchased,  including  the  $16,100 
yet  to  be  paid  on  this  land,  will  have  cost  only  $108- 
600  of  preferred  stock  and  $211,000  of  common 
stock  of  Ohio  Cement  Company,  and  have  gone 
into  the  Company  at  exact  cost* 

Ohio  Cement  Company  has  no  debts  except  cur- 
rent accounts* 


5 


A Word  to  Investors 


OHIO  CEMENT  COMPANY  controls  enormous 
deposits  of  coal,  limestone  and  shale,  all  on  the  same 
land,  which  are  worth  many  millions  of  dollars  for 
cement,  brick,  pottery  and  other  purposes.  The  con- 
trol of  this  great  property  with  all  the  improvements 
has  been  secured  at  a most  reasonable  price  and  has 
gone  into  the  Company  at  exact  cost. 

Through  its  ownership  of  control  of  The  Ohio 
Portland  Cement  Company,  which  is  operating  its 
coal  mines  profitably,  Ohio  Cement  Company  is  al- 
ready a going  company,  now  making  money. 

Ohio  Cement  Company  will  do  all  its  own  con- 
structing and  operating,  through  its  own  subsidiary 
companies.  No  insiders  will  form  constructing, 
selling  or  operating  companies  to  profit  at  the 
expense  of  stockholders. 

An  investment  in  Ohio  Cement  Company  is  not 
temporary,  speculative  or  risky.  It  is  permanent  and 
as  solid  as  concrete  itself.  Each  share  of  stock  repre- 
sents specific  and  definite  ownership  in  enormously 
valuable  mineral  deposits  in  the  heart  of  industria 
America.  It  is  an  investment  for  the  present  and  for 
generations  to  come.  It  will  take  centuries  to  work 
out  the  deposits  of  raw  materials  controlled  by  the 
Company. 


6 


The  management  of  Ohio  Cement  Company  is  in 
the  hands  of  able,  experienced  and  successful  business 
men* 

Investments  in  cement  companies  are  known  to  be 
among  the  safest  and  most  profitable  possible  to  make* 
Some  cement  companies  are  naturally  better  than 
others*  Nature  has  done  practically  everything  for 
Ohio  Cement  Company  except  actually  to  make  the 
cement* 

Ohio  Cement  Company  has  not  issued  and 
will  not  issue  any  bonds*  The  financing  of  the 
Company  has  been  done  and  will  be  done  solely 
by  the  issue  of  stock*  The  policy  of  the  Company  is 
to  keep  out  of  debt  and  to  develop  its  great  property 
for  the  sole  benefit  of  its  stockholders* 

Ohio  Cement  Company  through  its  subsidiary 
companies,  is  mining  and  marketing  its  coal,  and  is 
planning  the  construction  on  its  lands  of  works  for 
manufacturing  Portland  cement  and  various  kinds 
of  brick,  pottery,  etc.  Work  has  been  begun  and 
a considerable  amount  already  accomplished  along 
these  lines* 

To  carry  out  its  plans,  the  stock  of  Ohio  Cement 
Company  is  offered  to  investors  on  the  basis  of  one 
share  of  preferred  stock  and  one  share  of  common 
stock  for  $100* 


7 


A Word  about  Cement 


PORTLAND  CEMENT  is  made  by  burning  at 
a temperature  of  about  3000°  F*  an  intimate  mix- 
ture of  silica,  alumina  and  lime*  To  obtain  this 
combination,  various  natural  materials  may  be  used, 
and  the  resulting  cement  be  of  equally  good  quality. 
The  materials  must  be  mixed  in  proper  proportions  to 
give  the  exact  chemical  combination  required* 

It  is  obvious  that  in  the  commercial  manufacture 
of  Portland  cement,  it  is  essential  that  the  materials 
used  should  be,  as  nearly  as  possible,  of  the  correct 
proportions  chemically  and  free  from  impurities,  to 
facilitate  correct  mixing;  that  they  should  lie  close 
to  each  other  and  in  a way  favorable  for  cheap  and 
easy  handling;  that  good  fuel  should  be  obtain- 
able at  a minimum  cost;  and,  finally,  that  the 
commodity,  on  completion,  should  have  good  shipping 
facilities  to  a market  as  close  and  as  extensive  as 
possible* 

The  ability  one  plant  possesses  to  manufacture 
Portland  cement  better  or  cheaper  than  another  de- 
pends upon  the  relative  excellence  of  these  natural 
conditions  and  the  skill  of  the  management  in  taking 
advantage  of  them* 

The  necessity  of  utilizing  natural  conditions  to  the 
greatest  extent  is  becoming  more  and  more  important* 


8 


As  has  been  true  in  every  industry,  the  early  cement 
plants  were  uneconomical  and  their  location  was  often 
governed  by  some  necessity  rather  than  conditions  of 
special  advantage*  This  is  strikingly  illustrated  by 
the  fact  that  the  manufacturing  cost  of  Portland 
cement  in  this  country  varies  from  about  40  cents  per 
barrel  to  over  $1*00  per  barrel*  Some  companies  are 
compelled  to  ship  all  of  their  raw  material  and  fuel  into 
their  plants  by  rail*  A majority  are  compelled  to  go 
long  distances  for  their  fuel  and  one  ingredient* 


Property 


OHIO  CEMENT  COMPANY  controls  about 
850  acres  of  mineral  land  near  Wellston,  Ohio* 

This  property  contains  limestone  and  shale  of  the 
proper  chemical  formation  and  in  quantity  sufficient 
for  manufacturing  an  almost  unlimited  amount 
of  Portland  cement,  fire  and  vitrified  brick  and 
pottery*  Both  the  limestone  and  shales  lie  at  an 
elevation  above  the  mill  site,  and  can  be  quarried 
at  a minimum  of  expense  and  handled  into  the  mill  by 
gravity*  The  importance  of  being  able  to  handle 
these  materials  by  gravity  is  better  appreciated  from 
the  fact  that  in  a plant  of  3,000  barrels  capacity,  about 
900  tons  of  limestone  and  shale  are  handled  daily. 

This  same  property  also  contains  deposits  of  Jackson 
Hill  coal,  estimated  to  contain  about  10,000,000  tons* 

The  coal  mines  are  opened  up,  equipped,  and  are 
now  in  operation* 

The  value  of  these  coal  mines  cannot  be  overesti- 
mated either  from  the  view  of  security  for  the 
investor,  ability  to  produce  immediate  earnings,  or  of 
furnishing  fuel  for  the  cement  and  brick  plants  at  the 
lowest  possible  cost* 

A standard  gauge  switch,  connecting  with  the 
D*  T.  & I*  Ry*,  extends  over  The  Ohio  Portland 


IO 


Cement  Company’s  own  right  of  way  direct  to  the 
Company's  coal  tipple,  thus  affording  the  Company 
connections  at  Wellston  with  the  C*  H.  & D*,  the 
Hocking  Valley  and  the  B*  & O*  Railways* 

Located  as  it  is  practically  in  the  center  of  business 
of  the  United  States,  and  in  close  touch  with  a dozen 
large  cities,  the  Company  has  shipping  facilities  over 
four  railroads* 

The  wonderful  combination  of  natural  conditions 
will  enable  the  Company  to  make  Portland  cement  of 
the  finest  quality  at  a cost,  as  estimated  by  our 
engineers,  one-third  cheaper  than  any  other  plant  east 
of  the  Mississippi  River . 


LIBRARY 
UNlVRRSn  Y C? 


Engineers'  Reports 

Office  of  Brush,  Allen  & Anderson, 
Engineers , 

Penobscot  Building. 

Detroit,  Mich.,  June  3,  1907. 

Mr.  IVm.  L.  Holmes , 

President  Ohio  Cement  Company, 

Detroit,  Mich. 

Dear  Sir : — 

We  have  examined  the  properties  of  The  Ohio 
Portland  Cement  Co*  at  Wellston,  Ohio,  and  submit 
the  following  report: 


Property 

The  property  of  The  Ohio  Portland  Cement  Co.  includes 
approximately  four  hundred  acres  of  land,  situated  in  Milton 
Township,  Jackson  County,  and  Clinton  Township,  Vin- 
ton County,  in  the  State  of  Ohio.  The  property  is  located 
about  four  and  one-half  miles  east  of  Wellston,  Ohio.  The 
property  is  cut  by  one  large  valley,  and  from  this  large  valley 
there  extend  a number  of  small  valleys  and  ravines.  Through 
this  valley  runs  a small  creek  which  is  dammed  at  a convenient 
point,  and  the  water  is  used  for  feed  water  for  the  boilers 
and  other  purposes.  On  the  sides  of  the  valley  are  exposed 
three  seams  of  Jackson  Hill  coal,  No.  3 seam  of  coal  being 
at  the  lowest  point  of  the  valley  along  the  side  of  the  creek. 
About  30  feet  above  the  No.  3 seam  of  coal  occurs  the  No. 
4 seam  of  coal,  this  seam  being  about  5 feet  thick.  Above 
this  seam  of  coal  is  a bed  of  limestone  from  9 to  1 2 feet  thick. 
36  feet  above  the  No.  4 seam  of  coal,  there  occurs  a No.  5 


12 


seam,  the  No.  5 seam  of  coal  being  about  3 feet  6 inches 
thick.  36  feet  above  the  No.  5 seam  of  coal,  occurs  the 
No.  6 seam  of  coal;  this  seam  of  coal,  however,  on  this 
particular  property  only  occurs  near  the  top  of  the  hills,  and 
is  therefore  very  limited  in  extent.  Above  the  seam  of  lime- 
stone mentioned,  occurs  a seam  of  21  feet  of  shale.  The 
property  itself  is  covered  with  timber,  the  majority  of  timber 
being  scrub  timber.  There  is,  however,  a proportion  of  the 
property  on  which  the  timber  is  sufficiently  large  so  that 
it  can  be  utilized  for  saw  timber.  The  scrub  timber  is  suffi- 
ciently heavy  for  timbering  in  the  mine. 

The  Company  has  already  installed  a mining  equipment 
of  sufficient  capacity  to  load  500  tons  of  coal  per  day.  This 
equipment  includes  a coal  tipple,  electrical  plant,  cutting 
machines,  mine  cars,  mules,  mine  tracks,  and  about  one  and 
one-half  miles  of  standard  gauge  track,  together  with  the 
right  of  way.  This  trackage  runs  from  the  mine  to  the 
D.  T.  & 1.  Ry. 


Limestones 

The  limestone  rock  in  this  property  occurs  above  the  No. 
4 seam  of  coal.  It  runs  from  nine  to  twelve  feet  in  thickness. 
It  is  uniform  in  quality  and  is  of  a variety  which  is  compara- 
tively easy  to  crush  and  grind.  This  limestone  outcrops  on 
both  sides  of  the  valley,  and  large  quantities  of  it  can  be 
removed  by  quarrying.  The  balance  of  the  limestone  can 
be  removed  by  quarrying  from  the  coal  mine  entries  with  the 
same  track  and  equipment  as  has  been  used  for  the  coal  min- 
ing, after  the  coal  has  been  removed.  The  limestone,  as  will 
be  seen  by  the  analysis  given  later,  is  suitable  for  the  manu- 
facturing of  cement. 


13 


Shale 

The  shale  occurs  in  a seam  about  20  feet  thick  just  above 
the  limestone,  the  separage  between  the  limestone  and  the 
shale  being  a layer  of  8 inches  of  iron  ore.  On  the  sides  of 
the  hills  this  iron  ore,  where  it  can  be  easily  reached,  has 
been  removed.  This  shale  can  be  easily  removed  by  a steam 
shovel,  and  sufficient  quantity  can  be  supplied  for  years  in  this 
way  for  the  operation  of  the  plant.  The  shale,  as  will  be 
seen  by  an  analysis  given  later,  is  of  proper  composition  for 
the  manufacture  of  cement. 


Coal 

As  has  been  stated,  there  are  on  the  Company’s  property 
four  veins  of  coal,  all  of  which  are  suitable  for  the  producing 
of  steam,  and  can  also  be  used  for  the  manufacture  of  cement. 
These  coal  seams  can  all  be  reached  by  drift  mines  from  the 
side  hill.  These  seams  of  coal  are  almost  perfectly  level,  and 
in  the  operation  of  the  mining  of  this  coal,  very  little  difficulty 
is  experienced  with  water.  The  Company  has  on  its  prop- 
erty a supply  of  coal  estimated  at  about  6,000,000  tons.  In 
manufacturing  cement,  it  will  be  possible  to  mine  enough  coal 
so  that  there  will  be  sufficient  slack  coal  available  for  the  use 
of  the  cement  plant,  the  lump  coal  being  sold.  It  is 
customary  in  mining  to  pay  the  miners  only  for  the  lump  coal ; 
this  being  the  case  the  Company  will  secure  its  fuel  practically 
without  cost. 

Analysis 

Our  Mr.  Allen  visited  the  property,  and  samples  were 
taken  by  him  of  the  limestone,  shale  and  coal.  These 
samples  were  sent  back,  under  his  direction,  to  the  University 
of  Michigan,  where  they  were  tested  by  Prof.  Alfred  H* 


14 


White,  Professor  of  Chemical  Technology.  The  following 
is  a copy  of  the  report  made  by  Prof.  White : 

I report  herewith  the  analyses  of  samples  of  limestone, 
shale,  and  two  coals  submitted  by  you : 


Limestone. 

Shale. 

Silica  (SiOo) 

.78 

69.65 

Oxides  of  Iron  (Fe0-(-Fe203)  .91 

* 

Oxide  of  Alumina  (A1  y0o)  .63 

19.55 

Lime  (CaO) 

54.28 

.74 

Magnesia  (MgO) 

.80 

3.44 

Loss  on  Ignition 

42.86 

5.47 

Sulphur  (S) 

.06 

.02 

*Very  small  and 

reported  with  A1203. 

Alkalies  not  determined. 

Coal  No.  4.  Coal 

No.  5. 

Moisture 

3.96 

4.62 

Volatile  Matter 

44.41 

39.94 

Fixed  Carbon 

42.46 

46.93 

Ash 

9.17 

8.51 

Sulphur 

5.58 

4.28 

This  report  shows  an  analysis  very  similar  to  that  which 
has  previously  been  made  by  other  chemists,  both  of  lime- 
stone and  shale.  The  coal  analysis  given  in  Prof.  White’s 
report  shows  much  higher  sulphur  than  has  been  shown  by 
previous  reports.  This  is  due  to  the  fact  that  the  mines  were 
not  in  operation  when  the  samples  were  taken,  and  it  was 
necessary  to  take  samples  from  the  face  of  the  seam,  through 
which  more  or  less  water  containing  sulphur  had  percolated. 
The  normal  amount  of  sulphur  for  the  No.  4 seam,  as  shown 
by  previous  analysis,  should  be  about  2.75  per  cent,  and  for 
the  No.  5 seam  3.05  per  cent. 


*5 


General  Location 


The  location  of  the  plant  is  exceptionally  desirable  for  the 
manufacturing  of  cement. 

One  of  the  most  favorable  points  is  the  fact  that  there 
occurs  on  this  property  the  three  principal  ingredients  used 
in  the  manufacture  of  cement,  in  sufficient  quantities  to  supply 
a cement  plant  for  a large  number  of  years.  This  fact  saves 
a very  large  item  of  expense  in  transportation. 

In  addition,  it  eliminates  one  of  the  most  troublesome 
questions  in  factory  management,  that  is,  the  question  of  car 
shortage  in  railway  facilities,  as  we  have  all  of  the  materials 
desired  to  make  cement  on  our  own  property,  and  we  are  not 
dependent  upon  any  common  carrier  for  our  raw  material. 

The  plant  is  well  located  as  regards  railway  facilities, 
having  a switch  already  installed,  which  extends  to  the  D.  T. 
& I.  Ry.  The  properties  are  only  four  and  one-half  miles 
from  Wellston,  which  has  four  railroads  running  into  it ; this 
affords  the  very  best  possible  transportation  facilities. 

The  occurrence  of  the  cement  making  materials  being  all 
above  the  valley,  makes  it  possible  to  introduce  the  various 
materials  in  the  factory  by  gravity,  and  to  handle  a great 
many  of  the  operations  in  the  factory  by  gravity,  saving  the 
cost  of  expensive  elevating  machinery,  and  its  up-keep,  and 
also  saving  the  power  required  to  operate  it. 

In  examining  the  anaylsis  of  the  ingredients  to  be  used 
in  the  manufacture  of  cement,  it  is  very  noticeable  that  they 
are  particularly  low  in  iron  oxide.  This  is  very  desirable 
from  the  fact  that  cement  produced  from  materials  low  in 
iron  oxide  has  a much  better  color.  Where  iron  oxide  is 
present,  the  cement  has  a bluish  gray  color  which  is  objec- 
tionable in  many  building  operations. 

16 


Cost  to  Manufacture 


The  following  estimate  has  been  made  of  the  cost  for 
manufacturing  a barrel  of  cement  in  this  plant : 


Rock $ .08 

Shale 01 

Labor 10 

General  supplies  and  packing 05 

Interest  and  depreciation 10 

Cost  per  barrel $ .34 


You  will  note  in  this  estimate  that  no  allowance  has  been 
made  for  coal.  It  is  reasonable  presumption,  as  stated  before, 
that  this  coal  can  be  obtained  for  nothing.  If,  however,  the 
entire  cost  of  mining  coal  were  charged  to  the  cement  plant, 
the  expense  would  not  exceed  $ .06  per  barrel,  making  the 
cost  under  these  conditions  $ .40  per  barrel.  The  above 
estimate  is  based  on  a cement  production  between  2,500  and 
3,000  barrels  per  day. 


In  General 

The  raw  materials  for  making  cement  on  this  property 
are  as  nearly  perfect  as  we  have  ever  known  them  to  be 
found,  while  their  location  in  successive,  perfectly  horizontal 
strata  above  the  mill  site,  and  the  free  fuel  make  it  possible  to 
manufacture  cement  here  at  a lower  cost  than  anywhere  else 
in  the  country,  of  which  we  have  knowledge. 

Respectfully  submitted, 

BRUSH,  ALLEN  & ANDERSON. 


i7 


Detroit,  December  19,  1907. 


Mr.  Wm.  L . Holmes , 

President  Ohio  Cement  Company. 

Dear  Sir: — 

We  beg  herewith  to  report  regarding  the  preliminary  in- 
vestigation made  by  our  Mr.  Brush  and  Mr.  Allen  on  a tract 
of  440  acres  of  mineral  land  lying  directly  north  of  the 
property  of  The  Ohio  Portland  Cement  Company. 

Our  investigation  consisted  of  a thorough  examination  of 
surface  conditions,  including  outcroppings,  elevation  of  land, 
extent  and  depth  of  valleys,  etc.,  covering  several  days.  The 
information  thus  gained,  taken  in  connection  with  our  knowl- 
edge of  your  present  property  and  local  conditions  in  general, 
leads  to  the  following  deductions : 

The  property  examined  undoubtedly  contains  the  same 
veins  of  coal,  limestone  and  shale  as  are  found  on  The  Ohio 
Portland  Cement  Company’s  land.  Also  on  account  of  the 
increased  elevation  and  the  few  and  comparatively  shallow 
valleys,  it  will  contain  these  materials  on  a very  large  propor- 
tion of  its  area. 

We  would  estimate  the  property  examined  to  contain  50 
per  cent  more  coal,  limestone  and  shale  than  the  present 
Ohio  Portland  Cement  Company’s  land. 

Yours  very  truly, 

BRUSH,  ALLEN  & ANDERSON. 


18 


Opportunity 

To  the  person  who  has  never  yet  thought  of  the 
opportunities  for  the  development  of  large  commercial 
enterprises  of  great  earning  power  in  Southern  Ohio, 
the  very  business  center  of  the  United  States,  we  offer 
this  outline  of  the  possibilities  of  Ohio  Cement 
Company. 

The  mineral  resources  of  Ohio  are  in  no  way 
spectacular,  and  no  abnormal  profits  will  ever  be  made 
from  any  haphazard  effort  at  development.  There  is 
nothing  in  the  mineral  deposits  to  attract  specula- 
tors by  sensational  values.  Possibly,  for  this  reason, 
there  has  been  comparatively  little  development  in 
Southern  Ohio  except  for  coal. 

There  are,  however,  to  be  found  in  this  district, 
deposits  of  minerals,  principally  limestones,  clays  and 
coal,  which,  on  account  of  their  purity  and  desir- 
ability for  manufacturing  cement,  brick,  etc.,  are  of 
untold  commercial  value.  This  fact  has  been  recog- 
nized for  many  years,  and  has  been  the  subject  of 
many  reports,  including  a special  report  by  the  State 
Geologist  of  Ohio. 

We  have  not  discovered  anything,  nor  have  we 
made  any  new  inventions.  What  we  have  done  is  to 
find  a property  which  offers  almost  ideal  natural  con- 
ditions, and  to  apply  to  the  study  of  the  conditions  and 


19 


possibilities  of  that  property  the  best  possible  technical 
ability. 

The  peculiar  formation  of  the  various  strata  of 
Southern  Ohio  is  such  that,  to  have  a proper  com- 
mercial arrangement,  the  operations  of  handling  the 
three  main  products  must  be  carried  on  simultaneously 
and  each  in  its  proper  proportion.  Such  an  arrange- 
ment contemplates  the  use  of  shales  in  brick  manufac- 
ture and  as  a part  of  the  raw  product  of  cement ; the 
use  of  limestone  in  making  cement  and  possibly  for 
burning  to  use  in  sand-brick  manufacture ; and  the 
mining  of  coal,  partly  for  sale  to  the  market,  and 
partly  for  cement  and  brick  burning,  and  for  power 
purposes. 

Such  a commercial  arrangement,  when  properly 
carried  out,  will  bring  a large  element  of  economy  to 
each  individual  operation  which  would  not  exist  were 
that  operation  carried  on  alone.  The  various  manu- 
facturing activities  will  be  conducted  with  equipment 
common  to  one  or  more  of  the  industries.  One  sys- 
tem of  trackage,  trolleys  and  electrical  hauling  loco- 
motives will  be  common  to  all  branches.  Electric  air 
drills  for  rock  drilling  will  be  operated  from  the  same 
electrical  supply  mains.  The  large  scale  on  which 
materials  will  be  handled  will  justify  steam  shovels. 
The  coal,  which  forms  a large  item  in  cement  and 
brick  manufacture,  will  be  obtained  from  our  own 


20 


mines,  and  our  slack  coal  will  be  used  in  our  own 
power  plant  at  the  same  time  that  the  lump  coal  is 
being  sold  at  a profit. 

These  are  but  a few  of  the  items  of  economy 
which  any  business  man  can  appreciate*  These 
economies  alone  represent  a very  attractive  commer- 
cial profit* 

With  the  various  operations  properly  proportioned, 
it  will  be  possible  for  us  to  utilize  some  materials  at  a 
great  profit  which  could  not  be  handled  at  all  alone. 
A very  good  illustration  of  this  is  the  iron  ore,  a small 
vein  of  which  covers  the  greater  portion  of  our 
property. 

The  development  of  Ohio  Cement  Company  is  in 
no  way  an  experiment  with  unknown  and  uncertain 
materials  and  conditions,  but  is  simply  the  application 
of  the  same  business  and  engineering  principles  of 
economy  which  have  been  essential  to  the  success  of 
all  great  enterprises* 


21 


Estimated  Earnings 


For  the  purpose  of  estimating  the  earnings  of  Ohio 
Cement  Company's  projected  cement  works,  the 
capacity  is  estimated  at  1,000,000  barrels  per  year, 
and  the  average  selling  price  of  cement  at  only  $1.00 
per  barrel. 

The  capacity  of  the  works  is  expected  to  be  over 
1,100,000  barrels  per  year,  while  the  average  selling 
price  of  'cement,  through  a series  of  years,  has  been 
$1.10  per  barrel  at  the  mills. 

Output  of  cement  works,  3,000  barrels  per  day. 

1 ,000,000  barrels  per  year. 

Selling  price  at  works  $ 1 .00  per  barrel. 

Total  income  $1,000,000 

Cost  to  make,  40  cents  per  barrel, 


Total  cost 


400,000 


$600,000 


Deduct  7 % on  $1,500,000 


preferred  stock, 

Deduct  10%  on  $3,000,000 


$105,000 


common  stock, 


300,000  405,000 


Surplus, 


$195,000 


22 


Explanation 

The  average  cost  to  manufacture  cement  in  the 
Lehigh  Valley,  where  50  per  cent  of  all  the  cement  in 
the  United  States  is  made,  is  about  65  cents  per  barrel* 
The  Lehigh  Companies  are  obliged  to  bring  the  coal 
with  which  to  burn  their  cement  over  the  mountains 
from  the  soft  coal  districts*  The  freight  on  cement 
from  the  Lehigh  plants  to  Ohio  points  makes  the 
cement  of  these  companies  cost  them  $1*00  and  up- 
wards per  barrel,  laid  down  in  Ohio* 

It  will  be  seen  that  Ohio  Cement  Company  should 
earn  60  cents  per  barrel,  or  $600,000  per  year,  when 
cement  is  selling  at  only  $1*00  per  barrel,  which 
would  be  prohibitive  for  Ohio  delivery  from  the 
Eastern  cement  plants  or  for  any  cement  works  out- 
side of  Ohio* 


23 


The  nature  of  the  cement  industry  renders  it  improbable 
that  any  combination  or  non-competitive  arrangement  can  be 
carried  through  to  such  a point  as  to  result  in  a monopoly  of 
the  industry  and  permanently  high  prices.  Good  raw 
materials  are  so  widely  distributed  throughout  the  United 
States  that  there  is  hardly  a county  which  could  not  produce 
Portland  cement  if  prices  were  forced  high  enough.  The 
only  limitation  now  on  the  erection  of  cement  plants  is  the 
fact  that  they  cost  too  much  for  an  individual  or  small  firm  to 
enter  the  business.  A plant  producing  2,000  barrels  per  day 
will  require  an  investment,  for  land,  plant  and  working 

capital,  of  between  $1,000,000  and  $1,500,000. — U.  S. 
Geological  Survey,  1 905. 


The  reaction  in  business  and  the  suspension  of  a great 
many  industrial  plants  during  November  and  December,  1907, 
and  the  early  part  of  1908,  and  the  stoppage  of  nearly  all 
new  work,  are  bound  to  make  money  cheap  during  the  next 
year,  and  it  will  be  easy  for  railroads,  manufacturers  and 
mining  companies  of  good  standing  to  fund  their  floating 
indebtedness.  After  this  has  been  accomplished  it  will  bring 
about  the  greatest  industrial  movement  this  country  has  ever 
seen,  and  during  the  latter  part  of  1 908,  and  in  1 909  and 
and  1910,  our  prosperity  will  exceed  any  we  have  ever  en- 
joyed heretofore.  To  keep  up  with  the  natural  increase  in 
the  consumption  of  the  country,  it  will  be  necessary  to  build 
new  railroads,  new  factories,  develop  new  mines  and  increase 
the  production  of  all  the  necessities  of  life. — Cincinnati 
Enquirer,  January  1,  1908. 


